Hi and welcome back again to this multipart series. This is the second part of this multipart series about passive income ideas. In today’s part, we will talk about real estate ideas that you can use to earn passive income. Before we can get into it, you might want to learn about the first part of this series. Read it here Passive Income Ideas (Part 1 – Investments). In part one we talked about point Now after you read the first part, then lets go into the next part.
Real Estate Passive Income Ideas.
Below, we will go through a few of the main real estate ideas that you can use to earn a passive income.
Idea #9. Rental Properties.
A major way you can earn a passive income with real estate is through rental property. This is whereby you build rental houses/apartments that you will rent our to people. If you live in a city or urban area, chances are you live in one of these rental properties. Actually, if you live in a city and you pay rent for your apartment, then you are definitely living in a rental property.
This idea of passive income is a very potent one. It can make you a lot of money. Especially if your rental property is in a high demand area of the city. There are billionaires in this world just for their rental property.
Another advantage of this method of passive income is that it is long lasting. Once you set up your rental property, you can live to collect rent on it for years. In addition to that, the income is consistent. You will keep getting a consistent continuous income flow from your rental property.
However, this method of passive income has its challenges. One of the biggest challenges is that it requires a lot initial capital. It requires a lot of initial investment. To build a rental apartment/house is not cheap. Most rental properties cost tens of thousands of dollars just to build. In addition to that, the next challenge that this method faces is that its not quick. It will take you time to build a rental property and get tenants. You don’t just wake today and next week you are earning using rental property.
Idea #10. Vacation Rentals (Airbnb, etc.).
Another great way that you can earn passive income with real estate is through vacation rentals. In the current times, you can make money through short term rentals. This is whereby you rent out your property to short time renters. These are people who are not coming to live in your property for a long time. Usually its less than a month. Platforms like Airbnb are the best to get such short time clients for your rental property.
You know what is best about this? Even you who does not own any rental property can make money with this. You can rent out your own rented apartment. Let me break this down. You do not own any rental property right. Then you go ahead and rent out an apartment in a high demand area of the city. Then with this rented apartment of yours, you list it on airbnb and get the short term clients. You let the short term clients stay in the apartment and pay you. If you do your math well, the money you make from the short term renters is higher than the monthly rent to your landlord. This way, you get to make money.
Idea #11. Real Estate Crowdfunding.
Another major way you can earn passive income from real estate is through crowdfunding. You come together as many people(crowd) and raise revenues. This revenue can be used to invest in property. Am sure by now you know how investment works. You buy in into a property that you expect value to go up. Then when the value goes up, your worth in the property goes up. If you wish to cash out, you cash out at a higher money than the one that you paid for it.
Idea #12. Storage Rentals.
Other than bringing people to live in your rental property, there are other methods that you can earn with it. One of those methods is through storage. You can provide storage room/services to locals or local businesses and companies. The need for storage room has always been there and will always be there. Especially, if you can get a company or a business to provide storage for them, then you can make a lot of money out of it. You know companies and businesses have money and can pay you well for it. In addition to that, the companies/businesses need a lot of storage space which can be great for you.
Idea #13. House Hacking.
Another idea that you can use to earn passive income with real estate is through house hacking. House hacking is whereby you live in one unit and then rent out the rest. For example, if you are one of those people with a lot of houses or very big houses, you can live in certain quota and rent our the rest of the property. Alternatively, if you do not own any rental property, you can rent out multiple rental spaces, live in one and then rent out the rest.
Conclusion.
Now you know Real Estate Passive Income Ideas. These are ideas from real estate, that you can use to earn a passive income. This marks the end of the second part of this multipart series about passive income. This part has reached out ideas to 13. Come again tomorrow as we discuss father more passive income ideas in part 3.
